I have some questions regarding how long term capital gain (LTCG) tax is calculated.
Using 2024 numbers, $0 to $94,050 LTCG tax rate is %, married filing jointly standard deduction is $29,200.
If my income is $123, 250 with all of it being LTCG, my tax will be $0 because my taxable income is $123,250 - $29,200 = $94,050, which falls in the 0% bracket.
Now if I make $1 more in LTGC, my taxable income will be $94,051, which falls in the 15% bracket. What I want to know is: does this make the whole $94,051 taxed at 15% or only the $1 (the portion that's above the $94,050 threshold) taxed at 15% and the $94,050 still at 0%?
I will be surprised if it is former case but there are some online calculators that.
Thank you.
